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| Press release - Turkey |
EuroFinance Conference Highlights Risk Management as a Key Concern for Finance Professionals in Turkey
Risk Management is the top concern for Turkey’s corporate treasurers in 2007, according to the results of a poll of over 500 delegates to EuroFinance’s 3rd Annual Conference on Cash, Treasury and Risk Management in Turkey. Tailored to finance professionals working within, or responsible for, corporations in Turkey, the conference was held in Istanbul in May.
“As Turkey benefits from strong growth, a huge increase in foreign direct investment and rising business confidence, we are seeing increasing interest in wide-ranging corporate finance concerns and developments,” said Carolyn Meier, Managing Director of EuroFinance Conferences Ltd. “This was our biggest Turkish conference to date, with local and international thought leaders elucidating the diverse treasury challenges and solutions in Turkey today.”
Conference Chairman Murat Erden, Head of Treasury at TurkCell, conducted the delegate poll using an SMS voting system. He reported that for 66% of delegates risk management is their top concern; for 28% it is liquidity management; for 6% it is technology and systems; and for a mere 1% it is regulatory and compliance issues. As regards concerns specific to liquidity management in particular, for 60% the top concern is cash forecasting, for 16% it is investment management; for 10% it is global cash management; and for 13% it is ensuring access to cash and liquidity.
On the question of the cash position of corporates at the end of 2007, 17% of delegates anticipate it will remain unchanged; 33% expect it to increase; and 50% see it decreasing. Ninety-five percent of delegates indicated their treasury or finance departments forecast future cashflows. Eighty percent of respondents indicated they use spreadsheets when forecasting future cashflows; 17% use ERP; 3% use third party treasury workstations and none use bank software. Only 21% of delegates have treasury-management software, however a further 37% are planning to acquire this.
Not all delegates were from firms that have a treasury department. Of the 60% of delegates from firms that do have a treasury department, the number of people working in treasury ranged from 0–2 for 50%; from 34 for 28%; from 5–6 for 14%; and more than 7 for the remainder.
In response to questions regarding the 2007 year-end Turkish Lira per US Dollar rate (USDTRY), 15% of delegates estimate it being below 1,3500; 45% between 1,3500 and 1,4000; 32% between 1,4000 and 1,4500; and 8% above 1,4500. When estimating the 2008 year-end USDTRY level, 3% of respondents put it below 1,3500; 10% between 1,3500 and 1,4000; 27% between 1,4000 and 1,4500; and 60% above 1,4500. On the question of how EUR would react against USD in 2008, 25% of delegates predict it will remain unchanged; 54% expect appreciation of 5%; and 21% anticipate depreciation of 5%.
When forecasting the 2007 CPI figure, 12% of delegates put it between 4% and 8%; 70% between 8% and 12%; and 18% above 12%.
Four percent of delegates put the Turkish central bank interest rate in 2007 at below 15%; 54% put it between 15% and 17.50%; 19% put it at 17.50%; and 23% put it between 17.50% and 20%. The Turkish central bank interest rate in 2008 is estimated at below 15% by 32% of delegates; between 15% and 17.50% by 49%; at 17.50% by 10%; between 17.50% and 20% by 6%; and above 20% by 2%. |
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